The United States has recently announced a fresh wave of sanctions affecting approximately 130 entities, including companies based in China, Turkey, and the United Arab Emirates. These sanctions are imposed on the grounds of allegations that these entities have been providing essential components and technology to Russia’s military, thereby assisting in its ongoing conflict in Ukraine.
Secretary of the Treasury, Jane Yellen, stated, “Russia is dependent on willing third-country individuals and entities to resupply its military and perpetuate its heinous war against Ukraine, and we will not hesitate in holding them accountable.”
These new measures specifically target vital supply chains that have been enabling Russia to circumvent international sanctions and export controls. Russia has been exploiting “otherwise legitimate economic relationships” with China, Turkey, and the UAE, allowing entities in these countries to send “high-priority dual-use goods” to Russia. These goods include items like vehicle parts or encryption software that can be utilized by both civilians and the military.
One notable aspect of these sanctions is that they mark the first time the United States has taken action against the production of Russia’s Lancet suicide drones. Ukrainian soldiers have reported that these drones, characterized by their angular grey tubes with two sets of four wings, have become an increasingly significant threat on the front lines.
Ukraine has welcomed these sanctions, with President Volodymyr Zelenskyy describing them as “just what is needed.” His chief of staff, Andriy Yermak, expressed satisfaction with the tightening restrictions against companies linked to Russia’s military-industrial complex.
The new Treasury sanctions also target Russia’s domestic industrial base, which, according to the Treasury, has shifted its focus from producing goods for the Russian population to sustaining the war machine.
Additionally, the US Department of State has separately imposed 100 new sanctions targeting Russia’s energy, metals and mining sectors, defense procurement, and individuals involved in supporting the Russian government’s war effort and other malign activities.
The Commerce Department has also blacklisted 12 Russian companies and one from Uzbekistan, alleging that they have assisted Moscow in acquiring critical drone technology.
The US, along with the European Union and other countries, has previously imposed sanctions on hundreds of Russian individuals and entities since Russia’s unprovoked invasion of Ukraine in February 2022. These sanctions have targeted Russia’s economy, including freezing overseas assets, restricting exports, and making business operations in Russia challenging and costly.
Yellen emphasized that the “global sanctions coalition” has significantly restricted Russia’s access to essential inputs for its military-industrial complex and has undermined the Kremlin’s capacity to wage its unprovoked war.
Despite the sanctions, Russia’s economy is projected to grow by 1.5 percent this year, according to the European Bank for Reconstruction and Development, partly due to critical economic support from countries like China, Turkey, and India.
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